(2022-12-14-ний өдрийн орчуулгын хяналт)                              Unofficial translation

LAW OF MONGOLIA

January 26, 2017                                                       Ulaanbaatar city

ON ARBITRATION

/Revised edition/

CHAPTER ONE

GENERAL PROVISIONS

Article 1.Purpose of the Law

1.1.The purpose of this Law is to regulate relations, related to the settlement of legal disputes through arbitration procedure in accordance with international standards.

Article 2.Scope of the application of the Law

2.1.This Law shall be applied if the jurisdiction of the arbitration proceeding is in Mongolia.

2.2.Articles 10, 11, 27, 28, 29, 39, 48 and 49 of this Law shall apply to arbitration proceedings, even if the jurisdiction of the arbitration proceeding is another country other than Mongolia or not determined.

Article 3.Arbitration proceedings    

3.1.Arbitration proceedings shall be understood as an arbitration dispute settlement proceeding being conducted by a permanent or ad hoc arbitration.

3.2.International arbitration proceedings shall include the following arbitration proceedings:

3.2.1.arbitration proceeding to be conducted when the business place of the parties to the arbitration agreement are in different countries at the time of the conclusion of such agreement;

3.2.2.arbitration proceeding to be conducted when the jurisdiction of the arbitration proceeding specified in the arbitration agreement or determined in thereof is different from the places of businesses of the parties;           

3.2.3.arbitration proceeding to be conducted when the place where a substantial part of the obligations of the commercial relationship is to be performed or the place with which the subject-matter of the dispute is most closely connected is different fromplaces of business of the parties;

3.2.4.arbitration proceeding to be conducted when the parties have expressly agreed that the subject-matter of the arbitration agreement concern more than one country.

3.3.For the purposes of Paragraph 3.2 of this Law:

3.3.1.if a party has more than one place of business, the place of business is that which has the closest relationship to the arbitration agreement;

3.3.2.if a party does not have a place of business, reference shall be made to its permanent location.

3.4.Domestic arbitration proceeding shall mean arbitration proceedings other than international arbitration proceeding.

Article 4.Consideration of receipt of documents

4.1.The document is deemed to have been received on the day it is so delivered.

4.2.Unless otherwise agreed by the parties, the documents shall be deemed to have been received under the following conditions:

4.2.1.any documents are deemed to have been received if they are delivered to the addressee personally or if they are delivered to his/her place of business, permanent location/residence or postal address;

4.2.2. if none of the addresses specified in Sub-paragraph 4.2.1 of this Law can be found after making a reasonable inquiry, a document is deemed to have been received if it is sent to the addressee's last place of business, permanent location/residence or last known mailing address by registered post-delivery or any other means which provides a recording of the attempt to deliver it;

4.3.The Paragraphs 4.1 and 4.2 of this Law shall not apply to court proceedings.

Article 5.Waiver of right to file a complaint

5.1.A party who knows that any provision of this Law from which the parties may derogate or any requirement under the arbitration agreement has not been complied with and yet proceeds with the arbitration proceedings without stating its complaint to such non-compliance immediately or, if a time-limit is provided therefor, within such period of time, shall be deemed to have waived their right to file a complaint.

Article 6.Court intervention

6.1.No court shall intervene in matters governed by this Law, except where provided for in this Law.

6.2.The functions referred to in Paragraphs 11.1, 13.4, 13.5, 15.3, 16.1, 18.7, 39.1 and Article 47 of this Law shall be performed by the Civil Court of Appeals in the place where the arbitration proceedings take place, and in the case of international arbitration proceedings, by the Capital City Court of Civil Appeals.

6.3.The functions referred to in Articles 27, 29, 48 and 51 of this Law shall be performed by the court in the first instance at the declared place of residence of the defendant or at the place where his/her property is situated.

Article 7.Type of arbitration

7.1.Arbitration can be either permanent or temporary/ad hoc.

7.2.Permanent arbitration shall be governed by the rules of arbitration. The rules of permanent arbitration may stipulate that the request specified in Paragraphs 13.4 and 16.1 of this Law shall be resolved by authorized bodies.

7.3.In Mongolia, permanent arbitration may be established next to the professional unions and non-governmental organizations such as trade producers', and trade consumers', and the Chamber of Commerce and Industry. 

7.4.The permanent arbitration specified in Paragraph 7.3 of this Law shall have the premises and personnel to conduct the arbitration proceedings.

7.5.A temporary arbitration shall be established in accordance with the procedures agreed upon by the parties.

CHAPTER TWO

ARBITRATION AGREEMENT

Article 8.Arbitration agreement and its form

8.1."Arbitration agreement" shall mean an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not.

8.2.An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement.

8.3.The arbitration agreement shall be in writing.

8.4.An agreement is in writing if its content is recorded in any form, whether or not the arbitration agreement or contract has been concluded orally, by conduct, or by other means.

8.5.The requirements set forth in Paragraph 8.3 of this Law shall be deemed to have been met in the form of information exchange, if it is possible to access and use the information contained in electronic communication.

8.6."Electronic communication" shall mean any communication that the parties make by means of data messages.

8.7."Data message" shall mean information generated, sent, received or stored by electronic, magnetic, optical or similar means, including, electronic data interchange, electronic mail, and telegram telex. 

8.8.An agreement is in writing if it is contained in an exchange of statements of claim and defense in which the existence of an agreement is alleged by one party and not denied by the other.

8.9.The reference in a contract to any document containing an arbitration clause constitutes an arbitration agreement in writing, provided that the reference is such as to make that clause part of the contract.

8.10.An arbitration agreement shall be valid whether the main agreement between the parties is valid, whether one of the parties withdraws from the agreement or is unable is to meet its obligations. 

8.11.In the case of a dispute over consumer rights, the arbitration agreement shall be concluded in writing separately after the dispute has arisen and shall specify the jurisdiction of the arbitration proceedings.

Article 9.Disputes subject to jurisdiction of an arbitration

9.1.Any dispute specified in the arbitration agreement shall be settled by arbitration, with the exception of the special jurisdiction of the court.

Article 10.Arbitration agreement and filing a claim to court

10.1.A court before which an action is filed in a matter which is the subject of an arbitration agreement shall, if a party so requests not later than when submitting his/her first statement on the substance of the dispute, refer the parties to arbitration unless it finds that the agreement is null and void, inoperative or incapable of being performed.

10.2.Where an action referred to in Paragraph 10.1 of this Law has been filed, arbitration proceedings may nevertheless be commenced or continued, and an award may be made, while the issue is pending before the court.

Article 11.Arbitration agreement and measures to secure enforcement of arbitration award

11.1.Before the start of the arbitration proceedings, or during the proceedings, a request to the court to take measures specified in Article 19.2 of this Law to secure enforcement of arbitration award, and the court's decision granting the request, shall not be considered a violation of the arbitration agreement.

CHAPTER THREE

THE ARBITRATION TRIBUNAL AND ITS POWERS

Article 12.Arbitration tribunal

12.1."An arbitration tribunal" means a sole arbitrator or several arbitrators who shall resolve the dispute.

12.2.The parties have the right to determine the number of arbitrators.

12.3.When the number of arbitrators has not been determined, the arbitration tribunal shall consist of three arbitrators.

Article 13.Procedure for appointing an arbitrators

13.1.The parties may appoint a person as an arbitrator who fulfills the following criteria:

13.1.1.in compliance with specific skills and professional qualifications agreed by the parties;

13.1.2.be impartial and independent;

13.1.3.not violate the legal requirements prohibiting the holding of other jobs and positions at the same time.

13.2.No person shall be precluded by reason of his/her nationality from acting as an arbitrator, unless otherwise agreed by the parties.

13.3.The parties are free to agree on a procedure of appointing the arbitrator or arbitrators, except for the cases specified in Paragraphs 13.5, 13.6, 13.7, and 13.8 of this Law.

13.4.If parties do not agree on procedure of appointing the arbitrator, the following procedure shall be followed:

13.4.1.in an arbitration with three arbitrators, each party shall appoint one arbitrator, and the two arbitrators thus appointed shall appoint the third arbitrator. If a party fails to appoint the arbitrator within thirty days of receipt of a request to do so from the other party, or if the two arbitrators fail to agree on the third arbitrator within thirty days of their appointment, the appointment shall be made, upon request of a party, by the court or other authorized person (hereinafter referred to as 'authorized person') specified in the arbitration rules selected by the parties or agreed by the parties.

13.4.2.in an arbitration with a sole arbitrator, if the parties are unable to agree on the arbitrator, he/she shall be appointed, upon request of one of the parties, by the court or an authorized person.

13.5.Where an appointment procedure is agreed upon by the parties, but one of the following circumstances has occurred and the parties did not provide other methods of appointment in the procedure, any party has a right to request the court to appoint the arbitrator:

13.5.1.either party fails to comply with an obligation to appoint arbitrator;

13.5.2.the parties, or two arbitrators, are unable to reach an agreement to appoint the third arbitrator;

13.5.3.authorized persons, including an arbitral institution, fails to perform a duty to appoint an arbitrator which entrusted to it under such procedure. 

13.6.A decision made on the issues specified in Paragraphs 13.4 and 13.5 of this Law shall be finally binding.

13.7.The court, in appointing an arbitrator, shall have due regard to any qualifications required of the arbitrator by the agreement of the parties and appoint a person in compliance with the requirements of independence and impartiality as the arbitrators.

13.8.For international arbitration dispute, the court shall, in the case of a sole or third arbitrator, appoint an arbitrator of a nationality other than those of the parties whenever possible.

Article 14.Grounds for rejecting the arbitrators

14.1.When a person is approached in connection with his/her possible appointment as an arbitrator, he/she shall disclose any circumstances likely to give rise to justifiable doubts as to his/her impartiality or independence. An arbitrator, from the time of his/her appointment and throughout the arbitration proceedings, shall without delay disclose any such circumstances to the parties unless they have already been informed of them by him/her.

14.2.An arbitrator may be rejected only if circumstances exist that give rise to justifiable doubts as to his/her impartiality or independence, or if he/she does not possess qualification agreed to by the parties or set out by the law.

14.3.A party may reject an arbitrator appointment by him/her, or in whose appointment he/she has participated, only for reason of which he/she becomes aware of after the appointment has been made.

Article 15.Procedures for rejecting an arbitrator

15.1.The parties are free to agree on the procedure for rejecting an arbitrator, except the cases stated in Paragraph 15.3 of this Law.

15.2.Failing such agreement, a party who intends to reject an arbitrator shall, within fourteen days after becoming aware of the constitution of the arbitration tribunal or after becoming aware of any circumstance referred to in Paragraph 14.2 of this Law, send a written statement of the reasons for the reject to the arbitration tribunal. Unless the rejecting an arbitrator withdraws from his office or the other party agrees to the challenge, the arbitration tribunal shall decide on the challenge within thirty days after having received a party's written statement of reasons for the rejection.

15.3.If a rejection under any procedure agreed upon by the parties or under the procedure of paragraph 15.2 of this Law is not successful, the challenging party may request, within thirty days for international arbitration, and within fourteen days for domestic arbitration after having received notice of the decision rejecting, the court to decide on the rejection, which decision shall be subject to no appeal; while such a request is pending, the arbitration tribunal, including the challenged arbitrator, may continue the arbitration proceedings and make an award.

Article 16.Failure or impossibility to act as arbitrator

16.1.If an arbitrator becomes de jure or de facto unable to perform his/her functions or for other reasons fails to act without undue delay, his/her power terminates if he/she withdraws from his/her office or if the parties agree on the termination. Otherwise, if a controversy remains concerning any of these grounds, any party may request the court or other authority to decide on the termination of the power, and the decision shall be subject to no appeal.

16.2.If under  Paragraphs 15.2 and 16.1 of this Law, an arbitrator withdraws from his/her office or a party agrees to the termination of the power of an arbitrator, this does not imply acceptance of the validity of any grounds referred to in these Paragraphs 14.2 and 16.1 of this Law.

Article 17.Re-appointment of arbitrator

17.1.Where the power of an arbitrator terminates under Articles 15 and 16 of this Law or because of any other case of termination of his/her power, new arbitrator shall be re-appointed according to the rules that were applicable to the appointment of the arbitrator being replaced.

Article 18.The right of the arbitration tribunal to determine the jurisdiction of the dispute

18.1.The arbitration  tribunal may rule on its own jurisdiction, including any objections with respect to the existence or validity of the arbitration agreement.

18.2.An arbitration clause which forms part of a contract shall be treated as an agreement independent of the other terms of the contract. A decision by the arbitration tribunal that the contract is null and void shall not entail by the law itself /ipso jure/ the invalidity of the arbitration clause.

18.3.A plea that the arbitration tribunal does not have jurisdiction shall be raised not later than the submission of the statement of defense against claim. A party is not precluded from raising such a plea by the fact that he/she has appointed, or participated in the appointment of an arbitrator.

18.4.A plea that the arbitration tribunal is exceeding the scope of its authority shall be raised immediately during the arbitration proceedings.

18.5.As specified in Paragraphs  18.3 and 18.4 of this Law, an arbitration tribunal may admit a later plea if it considers the delay justified.

18.6.The arbitration tribunal may rule on a plea referred to in Paragraphs  18.3 and 18.4 of this Law either as a preliminary question or in an award on the merits.

18.7.If the arbitration tribunal rules as a preliminary question that it has jurisdiction, any party may request, within thirty days after having received notice of that ruling, the court to decide the matter, which decision shall be subject to no appeal. 

18.8.While such a request is pending, the arbitration tribunal may continue the arbitration proceedings and make an award.

CHAPTER FOUR

MEASURES TO SECURE ENFORCEMENT OF ARBITRATION AWARD AND PRELIMINARY ORDER

Article 19.Power of the arbitration tribunal to secure enforcement of the award

19.1.Unless otherwise agreed by the parties, at the request of a party, the arbitration tribunal may take measures to secure enforcement of the award.

19.2.Measure secure enforcement of the award / hereinafter referred to as "interim measures"/, whether in the form of an award or in another form, by which, at any time prior to the issuance of the award by which the dispute is finally decided, the arbitration tribunal orders a party to:

19.2.1.maintain or restore the status quo pending determination of the dispute;

19.2.2.take action that would prevent, or refrain from taking action that is likely to cause, current or imminent harm or prejudice to the arbitration process itself;

19.2.3.provide a means of preserving assets out of which a subsequent award may be satisfied;

19.2.4.preserve evidence that may be relevant and material to the resolution of the dispute.

Article 20.Conditions for taking interim measures

20.1.The party requesting interim measure specified in Sub-paragraphs 19.2.1, 19.2.2 and 19.2.3 of this Law shall prove the following conditions:

20.1.1.harm not adequately reparable by an award of damages is likely to result if the measure is not ordered, and such harm substantially outweighs the harm that is likely to result to the party against whom the measure is directed if the measure is granted;

20.1.2.there is a reasonable possibility that the requesting party will succeed on the merits of the claim.

20.1.3.the request for taking interim measures specified in Paragraph 19.2 of this Law shall be clear, understandable and actionable.

20.2.Determining the possibility specified in sub-paragraph 20.1.2 of this Law shall not affect the discretion of the arbitration tribunal in making any subsequent determination.

20.3.With regard to a request for interim measure under sub-paragraph 19.2.4 of this Law, the requirements in sub-paragraphs 20.1.1 and 20.1.2 of this Law shall apply only to the extent the arbitration tribunal considers appropriate.

Article 21.Application for preliminary orders and conditions for granting preliminary orders

21.1.Unless otherwise agreed by the parties, a party may, without notice to any other party, make a request for interim measure together with application for a preliminary order directing a party not to frustrate the purpose of the interim measure requested.

21.2.The arbitration tribunal may grant a preliminary order provided it considers that prior disclosure of the request for the interim measure to the party against whom it is directed risks frustrating the purpose of the measure.

21.3.The conditions defined under Article 20 of this Law shall apply to any preliminary order, provided that the harm to be assessed under sub-paragraph 20.1.1 of this Law, is the harm likely to result from the order being granted or not. 

Article 22.Specific procedure for preliminary order

22.1.Immediately after the arbitration tribunal has made a determination in respect of an application for a preliminary order, the arbitration tribunal shall give notice to all parties of the request for the interim measure, the application for the preliminary order, the preliminary order, if any, and all other communications, including by indicating the content of any oral and other form of communication, between any party and the arbitration tribunal in relation thereto.

22.2.At the same time by submitting the notice referred to in paragraph  22.1 of this Law, the arbitration tribunal shall give an opportunity to any party against whom a preliminary order is directed to present its case at the earliest practicable time.

22.3.The arbitration tribunal shall decide promptly on any objection to the preliminary order.

22.4.A preliminary order shall expire after twenty days from the date on which it was issued by the arbitration tribunal. However, the arbitration tribunal may issue an interim measure adopting or modifying the preliminary order, after the party against whom the preliminary order is directed has been given notice and an opportunity to present its case.

22.5.A preliminary order shall be binding on the parties but shall not be subject to enforcement by a court.

22.6.Such a preliminary order does not constitute an award.

Article 23.Modification, suspension and terminate interim measures and preliminary order

23.1.The arbitration tribunal may modify, suspend or terminate an interim measure to secure enforcement of the previously issued decision or the preliminary order it has granted, upon application of any party or, in exceptional circumstances and upon prior notice to the parties, on the arbitration tribunal's own initiative.

Article 24.Issuance of financial guarantee

24.1.The arbitration tribunal may require the party requesting interim measures to provide an appropriate financial guarantee in connection with the measure.

24.2.The arbitration tribunal shall require the party applying for a preliminary order to provide a financial guarantee in connection with the order unless the arbitration tribunal considers it inappropriate or unnecessary to do so.

Article 25.Information disclosure

25.1.The arbitration tribunal may require any party to disclose promptly any material change in the circumstances on the basis of which the measure was requested or granted.

25.2.The party applying for a preliminary order shall disclose to the arbitration tribunal all circumstances that are likely to be relevant to the arbitration tribunal's determination whether to grant or maintain the order, and such obligation shall continue until the party against whom the order has been requested has had an opportunity to present its case.

Article 26.Damages and cost

26.1.The party requesting an interim measure or applying for a preliminary order shall be liable for any costs and damages caused by the measure or the order to any party if the arbitration tribunal later determines that, in the circumstances, the measure or the order should not have been granted.

26.2.The arbitration tribunal may award on compensation for costs and damages specified in Article 26.1 of this Law at any point during the dispute resolution proceedings.

Article 27.Recognition and Enforcement of interim measures

27.1.The parties are obliged to fulfil interim measures taken by the arbitration tribunal.

27.2.The interim measure issued by an arbitration tribunal shall be recognized as binding and, unless otherwise provided by the arbitration tribunal, enforced upon application to the competent court, irrespective of the country in which it was issued, except as provided in Article 28 of this Law.

27.3.The party that is seeking or has obtained recognition or enforcement of interim measure shall promptly inform the court of any termination, suspension or modification of the interim measure.

27.4.The court of the state where recognition or enforcement is sought may, if it considers it proper, order the requesting party to provide appropriate security under Paragraph 27.2 of this Law, if the arbitration tribunal has not already made a determination with respect to security or where such a decision is necessary to protect the rights of third parties.

Article 28.Grounds for refusing recognition or enforcement of interim measures

28.1.Recognition or enforcement of interim measure may be refused only:

28.1.1.at the request of the party against whom it is invoked if the court is satisfied that:

28.1.1.a.such refusal is warranted on the grounds set forth in Articles 49.1.1.a, 49.1.1.b, 49.1.1.c and 49.1.1.d of this Law.

28.1.1.b.the arbitration tribunal's decision with respect to the provision of security in connection with the interim measure issued by the arbitration tribunal has not been complied with; or

28.1.1.c.the interim measure has been terminated or suspended by the arbitrator or, where so empowered, by the court of the state in which the arbitration takes place or under the law of which that interim measure was granted;

28.1.2.if the court finds that:

28.1.2.a.the interim measure is incompatible with the powers conferred upon the court unless the court decides to reformulate the interim measure to the extent necessary to adapt it to its own powers and procedures for the purposes of enforcing that interim measure and without modifying its substance;

28.1.2.b.any of the grounds set forth in Articles 49.1.2.a or 49.1.2.b of this Law apply to the recognition and enforcement of the interim measure.

28.2.Any determination made by the court on any grounds in paragraph  28.1 of this law shall be effective only for the purposes of the application to recognize and enforce the interim measure. The court where recognition or enforcement is sought shall not, in making that determination, undertake a review of the substance of the interim measure.

Article 29.Court-ordered interim measures

29.1.A court shall have the same power of issuing interim measure in relation to arbitration proceedings, irrespective of whether their jurisdiction is in the territory of Mongolia, as it has in relation to proceedings in courts. The court shall exercise such power in accordance with its own procedures in consideration of the specific features of international arbitration.

CHAPTER FIVE

CONDUCT OF ARBITRATION PROCEEDINGS

Article 30.Ensure equality treatment of parties

30.1.The parties shall be participating in the arbitration proceedings with equality and each party shall be given a full opportunity for express their status.

Article 31.Determination of arbitration procedure

31.1.Subject to the provisions of this Law, the parties are free to agree on the procedure to be followed by the arbitration tribunal in conducting the proceedings.

31.2.Failing such agreement, the arbitration tribunal may, subject to the provisions of this Law, conduct the arbitration in such manner as it considers appropriate. The power conferred upon the arbitration tribunal includes the power to determine the admissibility, relevance, materiality and weight of any evidence.

Article 32.Jurisdiction of arbitration

32.1.The parties are free to agree on the jurisdiction of arbitration. Failing such agreement, the place of arbitration shall be determined by the arbitration tribunal having regard to the circumstances of the case, including the convenience of the parties.

32.2.Notwithstanding the provisions of Article 32.1 of this Law, the arbitration tribunal may, unless otherwise agreed by the parties, meet at any place it considers appropriate for consultation among its members, for hearing witnesses, experts or the parties, or for inspection of goods, other property or documents.

Article 33.Commencement of arbitration proceedings

33.1.Unless otherwise agreed by the parties, the arbitration proceedings in respect of a particular dispute commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent.

Article 34.Language of arbitration proceedings

34.1.The parties are free to agree on the language or languages to be used in the arbitration proceedings.

34.2.Failing such agreement, the arbitration tribunal shall determine the language or languages to be used in the proceedings.

34.3.This agreement or determination, unless otherwise specified therein, shall apply to any written statement by a party, any hearing and any award, decision or other communication by the arbitration tribunal.

34.4.The arbitration tribunal may order that any documentary evidence shall be accompanied by a translation into the language or languages agreed upon by the parties or determined by the arbitration tribunal.

Article 35.Statements of claim and defense

35.1.Within the period of time agreed by the parties or determined by the arbitration tribunal, the claimant shall state the facts supporting his/her claim, the points at issue and the relief or remedy sought, and the respondent shall state his/her defense in respect of these particulars, unless the parties have otherwise agreed as to the required elements of such statements.

35.2.The parties may submit with their statements all documents they consider to be relevant or may add a reference to the documents or other evidence they will submit.

35.3.Unless otherwise agreed by the parties, either party may amend or supplement his/her claim or defense during the course of the arbitration proceedings, unless the arbitration tribunal considers it inappropriate to allow such amendment having regard to the delay in making it.

Article 36.Hearings and written proceedings

36.1.Subject to any contrary agreement by the parties, the arbitration tribunal shall decide whether to hold oral hearings for the presentation of evidence or for oral argument, or whether the proceedings shall be conducted on the basis of documents and other materials.

36.2.Unless the parties have agreed that no hearings shall be held, the arbitration tribunal shall hold such hearings at an appropriate stage of the proceedings, if so requested by a party.

36.3.The parties shall be given sufficient advance notice of any hearing and of any meeting of the arbitration tribunal for the purpose of inspection of goods, other property or documents.

36.4.All statements, documents or other information supplied to the arbitration tribunal by one party shall be communicated to the other party.

36.5.Any expert report or evidentiary document on which the arbitration tribunal may rely in making its decision shall be communicated to the parties.

Article 37.Consequences of default of a party in fulfillment their obligations

37.1.Unless otherwise agreed by the parties, if the arbitration tribunal finds that the default has no reasonable excuse, the following measures shall be taken:

37.1.1.the claimant fails to communicate his/her statement of claim in accordance with Paragraph 35.1 of this Law, the arbitration tribunal shall terminate the proceedings;

37.1.2.the respondent fails to communicate his/her statement of defense in accordance with Paragraph 35.1 of this Law, the arbitration tribunal shall continue the proceedings without treating such failure in itself as an admission of the claimant's allegations;

37.1.3.if any party fails to appear at a hearing or to produce documentary evidence, the arbitration tribunal may continue the proceedings and make the award on the evidence before it.

Article 38.Participation of experts in arbitration proceedings

38.1.Unless otherwise agreed by the parties, the arbitration tribunal may conduct the following proceedings:

38.1.1.may appoint one or more experts to report to it on specific issues to be determined by the arbitration tribunal;

38.1.2.may require a party to give the expert any relevant information or to produce, or to provide access to, any relevant documents, goods or other property for his inspection.

38.2.Unless otherwise agreed by the parties, if a party so requests or if the arbitration tribunal considers it necessary, the expert shall, after delivery of his/her written or oral report, participate in a hearing where the parties have the opportunity to put questions to him/her and to present expert witnesses in order to testify on the points at issue.

Article 39.Court assistance in taking evidence

39.1.The arbitration tribunal or a party with the approval of the arbitration tribunal may request from a competent court assistance in taking evidence. The court may execute the request within its competence and according to its rules on taking evidence.

CHAPTER SIX

MAKING OF AWARD AND TERMINATION OF PROCEEDINGS

Article 40.Legal norms applicable to dispute resolution

40.1.The parties shall mutually agree on the legal norms to be applied in dispute resolution and the arbitration tribunal shall settle dispute applying the legal norms agreed upon by the parties.

40.2.When applying the legal norms agreed upon by the arbitration tribunal parties, unless specifically stated in the agreement, they shall be understood as the substantive legal norms of the country and shall not include the norms of civil legal proceedings.

40.3.If the parties do not mutually agree on the legal norms to be used in resolving the dispute, the arbitration tribunal shall apply the substantive legal norms deemed appropriate for the resolution of the dispute.

40.4.If the parties do not mutually agree on the legal norms to be used in resolving the dispute, the arbitration tribunal shall follow ethical fair norms without using the legal norms or disputes will be resolved through mediation.

40.5.In all cases, the arbitration tribunal shall decide in accordance with the terms of the contract and shall take into account the usages of the trade applicable to the transaction.

Article 41.Arbitration cost

41.1.Unless otherwise agreed by the parties, the arbitration tribunal shall determine the amount of arbitration costs, the person to be paid, and payment procedure.

41.2.The cost of the arbitration includes:

41.2.1.the fees and expenses of arbitrators;

41.2.2.the service fees of a permanent arbitrator as specified in its rules;

41.2.3.the legal and other costs incurred by the parties in relation to arbitration, such as involving witnesses and experts, obtaining legal assistance and conducting examinations

Article 42.Decision making by arbitration tribunal

42.1.In arbitration proceedings with more than one arbitrator, any decision of the arbitration tribunal shall be made, unless otherwise agreed by the parties, by a majority of all its members.

42.2.However, questions of procedure may be decided by a presiding arbitrator, if so authorized by the parties or all members of the arbitration tribunal.

Article 43.Reconciliation between the parties

43.1.If the parties reach an agreement during arbitration proceedings, the arbitration tribunal shall terminate the proceedings and, if requested by the parties and not objected to by the arbitration tribunal, record the reconciliation in the form of an arbitration on agreed terms.

43.2.An award on agreed terms shall be made in accordance with the Article 44 of this Law and shall state that it is an award. Such an award has the same status and effect as any other award on the merits of the case.

Article 44.Form and contents of award

44.1.The award shall be made in writing and shall be signed by the arbitrator or arbitrators. In arbitration proceedings with more than one arbitrator, the signatures of the majority of all members of the arbitration tribunal shall suffice, provided that the reason for any omitted signature is stated.

44.2.The award shall state the reason upon which it is based, unless the parties have agreed that no reasons are to be given or the award is an award on agreed terms under Article 43 of this Law.

44.3.The award shall state its date and the place of arbitration as determined in accordance with Paragraph 32.1 of this Law. The award shall be deemed to have been made at that place.

44.4.After the award is made, a copy signed by the arbitrators in accordance with Paragraph 44.1 of this Law shall be delivered to each party.

Article 45.Termination of arbitration proceedings

45.1.The arbitration proceedings shall be terminated by the final award or by an order of the arbitration tribunal in accordance with Paragraph 45.2 of this Law.

45.2.The arbitration tribunal shall issue an order for the termination of the arbitration proceedings in the following cases:

45.2.1.the claimant withdraws his claims. The respondent objects thereto and the arbitration tribunal recognizes a legitimate interest on his/her part in obtaining a final settlement of the dispute and this sub-paragraph shall not apply;

45.2.2.the parties agree on the termination of the arbitration proceedings;

45.2.3.the arbitration tribunal finds that continuation of the arbitration proceedings, has for any other reason become unnecessary or impossible.

45.3.The power of the arbitration tribunal terminates with the termination of the arbitration proceedings, subject to the provisions of Article 46 and Paragraph47.4 of this Law.

Article 46.Correction and interpretation of award; additional award

46.1.Within thirty days of receipt of the award, unless another period of time has been agreed upon by the parties: a party, with notice to the other party, may request the arbitration tribunal to correct in the award any errors in computation, any clerical or typographical errors or ant errors of similar nature.

46.2.Within 30 days of receipt of the award, unless another period of time has been agreed upon by the parties, a party, with notice to the other party, may request the arbitration tribunal to give an interpretation of a specific point or part of the award, if so, agreed by the parties.

46.3.If the arbitration tribunal considers the request specified in Paragraphs 46.1 and 46.2 of this Law to be justified, it shall make the correction or give the interpretation within thirty days of receipt of the request. The interpretation shall form part of the award.

46.4.The arbitration tribunal may correct any error of the type referred to in Paragraph46.1 of this Law on its own initiative within thirty days of the date of the award.

46.5.Unless otherwise agreed by the parties, a party with notice to the other party, may request, within thirty days of receipt of the award, the arbitration tribunal to make an additional award as to claims presented in the arbitration proceedings but omitted from the award. If the arbitration tribunal considers the request to be justified, it shall make the additional award within sixty days.

46.6.The arbitration tribunal may extend, if necessary, the period of time within which it shall make a correction, interpretation or an additional award under Paragraphs46.1, 46.2 and 46.5 of this Law.

46.7.The Article 44 of this Law shall apply equally to a correction or interpretation of the award or to an additional award.

CHAPTER SEVEN

RECOURSE AGAINST AWARD

Article 47. Filing an application for annulment of the award

47.1.If the parties do not agree with award shall file an application to the court for annulment of the award in accordance with the grounds and procedures specified in Paragraphs 47.2 and 47.3 of this Law.

47.2. An award shall be annulled by the court specified in Article 47.5 of this Law only on the following grounds:

47.2.1.the party making the application furnishes proof that:

47.2.1.a.a party to the arbitration agreement referred to in Article 8 of this Law was under incapacity; or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law of Mongolia;

47.2.1.b.the party making the application was not given proper notice of the appointment of an arbitrator or of the arbitration proceedings or was otherwise unable to present his/her case;

47.2.1.c.the arbitration tribunal issued awards on an unrelated matter not mentioned in the claim. If the decisions on matters submitted to arbitration can be separated from those not so submitted, only that part of the award which contains decisions on matters not submitted to arbitration shall be annulled;

47.2.1.d.the composition of the arbitration tribunal or the arbitration procedure was not in accordance with this Law, unless such agreement was in conflict with mandatory provisions of this Law from which the parties cannot derogate, or, failing such agreement, was not in accordance with the agreements;

47.2.2 the court determines the following conditions and circumstances:

47.2.2.a.the subject matter of the dispute is not capable of arbitration jurisdiction under the law of Mongolia;

47.2.2. b.the award is in conflict with the common interest of Mongolia. 

47.3.The parties shall submit an application specified in Paragraph 47.1 of this Law to the court within 30 days for domestic arbitration proceedings and within 90 days for international arbitration proceedings, after receipt of the arbitration award or after resolving the request made in accordance with Article 46 in this Law.

47.4.The court, when asked to annul an award, may, where appropriate and so requested by a party, suspend the annulment proceedings for a period of time determined by it in order to give the arbitration tribunal an opportunity to resume the arbitration proceedings or to take such other action as in the arbitration tribunal's opinion will eliminate the grounds for annulment.

47.5.An application for annulment of an arbitration award shall be lodged with the court referred to in Paragraph 6.2 of this Law and the decision of the court which ruled on the application shall be final.

CHAPTER EIGHT

RECOGNITION AND ENFORCEMENT OF AWARDS

Article 48.Recognition and enforcement of awards

48.1.An arbitration award, irrespective of the country in which it was made shall be recognized as binding and, upon application in writing to the competent court, the award shall be enforced subject to the provisions of Articles 48 and 49 of this Law, and the basic arbitration award in accordance with the procedures set forth in the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitration Awards.

48.2.The party relying on the award or applying for its enforcement shall attach the original award or a duly certified copy thereof. If the award is not made in a Mongolian language, the court may request the party to supply a translation thereof into a Mongolian language.

Article 49.Grounds for refusing recognition or enforcement

49.1.Recognition or enforcement of an arbitration award, irrespective of the country in which it was made, may be refused only:

49.1.1.at the request of the party against whom it is invoked, if that party furnished to the competent court where recognition or enforcement is sought proof that:

49.1.1.a.a party to the arbitration agreement referred to in Article 8 was under some incapacity; or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law of the country where the award was made;

49.1.1.b.the party against whom the award is invoked was not given proper notice of the appointment of an arbitrator or of the arbitration proceedings or was otherwise unable to present the case;

49.1.1.c.the award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the scope of the submission to arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of the award which contains decisions on matters submitted to arbitration may be recognized and enforced;

49.1.1.d.the composition of the arbitration tribunal or the arbitration procedure was not in accordance with the agreement of the parties or, failing such agreement, was not in accordance with the law of the country where the arbitration took place;

49.1.1.e.the award has not yet become binding on the parties or has been set aside or suspended by a court of the country in which, or under the law of which, that award was made.

49.1.2.the court determined the following situation:

49.1.2.a.the subject matter of the dispute is not capable of arbitration jurisdiction under the law of Mongolia;

49.1.2.b.the recognition of enforcement of the award would be contrary to the common interests of Mongolia.

49.2.If an application for annulment or suspension of an award has been made to a court referred to in sub-paragraph 49.1.1 of this Law, the court where recognition or enforcement is sought may, if it considers it proper, adjourn its decision and may also, on the application of the party claiming recognition or enforcement of the award, order the other party to provide appropriate financial security.

CHAPTER NINE

MISCELLANEOUS

Article 50.Confidentiality

50.1.Unless otherwise agreed by the parties, the parties, the arbitration tribunal, and the arbitration institution shall be obliged to keep the confidentiality of the arbitration award, orders, and documents submitted by the parties during the arbitration proceedings, except as described below:

50.1.1.the relevant party is obliged by law to disclose information;

50.1.2.it is necessary to protect and pursue a legal right;

50.1.3.to enforce or challenge an arbitration award in legal proceedings before a court.

Article 51.Bankruptcy

51.1.The arbitration agreement shall be valid, if the bankruptcy dispute occurred in connection with one of the parties to the arbitration agreement, and the receiver and executor did not renounce the agreement.

51.2.The competent court for the bankruptcy proceedings may, if appropriate in the circumstances, direct any matter in connection with or for the purpose of bankruptcy proceedings to be referred to arbitration if all of the following requirements are met:

51.2.1.the matter is one to which the arbitration agreement applies;

51.2.2.the respondent entered into an arbitration agreement before to the commencement of the insolvency proceedings; and

51.2.3.the receiver or administrator did not disclaim the contract containing the arbitration agreement.

Article 52.Miscellaneous

52.1.In the absence of particular regulated norms in respect to relations applicable within the scope of application of this Law, it shall be regulated in accordance with the fundamental principles on which this Law is based.

52.2.Except as provided for in sub-paragraphs 37.1.1 and 45.2.1 of this Law, the relevant provisions of the claim and its response shall apply to the counterclaim and its responses.

52.3.Except for Article 40 of this law, the right of the parties to determine a certain issue shall apply to the right of the parties to transfer the right to determine the issue to a third party, including arbitration.

52.4.Notwithstanding, the parties have agreed or may have reached an agreement or other agreement, the rules of arbitration referred to in the agreement shall be treated as equivalent to the agreement. The provisions of the arbitration rules agreed upon or chosen by the parties before or after the commencement of the arbitration proceedings shall remain in force, except in cases of violation of the mandatory provisions of this Law.

THE CHAIRMAN OF THE STATE GREAT KHURAL OF MONGOLIA ENKHBOLD.M